RMC No. 60-2004: Clarifies the withholding of creditable Value-Added Tax by government offices on purchases of P1,000.00 and below

Key points

1. Rates under RR No. 2-98. Government payments for purchases from VAT-registered suppliers are subject to withholding tax: 3% on goods, 6% on services, 8.5% on payments to government public works contractors, and 10% on lease or use of property or property rights to non-resident owners.
2. No minimum amount. All payments by government offices, regardless of amount, are subject to the appropriate rate of withholding tax on VAT.

Who is affected

• Government offices, political subdivisions, instrumentalities, agencies and GOCCs making purchases
• VAT-registered suppliers to the government